Credit Constraints and Search Frictions in Consumer Credit Markets ⇤

Abstract

We document consumer credit constraints in the market for used cars and demonstrate that they persist in part because of search frictions in retail loan markets. Using rich microdata from several million auto loans extended by hundreds of financial providers, we isolate plausibly exogenous variation in interest rates due to institutionspecific rule-of-thumb… (More)

Topics

17 Figures and Tables